Selanjutnya

.MEM)RANDUH OF UNDERSTANDIN:;
BEI\.-JEEN
THE GJVERNMENT OF THE REPUBLIC OF INOONESIA
AND

THE GJVERNMENI' OF REPUBLIC OF FINLAND
CDNCERNING
MEOIANISED NURSERY AND PLANTATION PIDJECI'

Whereas, the Government of Republic of Indonesia (hereinafter referred
to as "the Government of Indonesia") and the Government of Republic of
Finland (hereinafter referred to as "the Government of Finland") have
on July 18, 1979, signed a .Merrorandtnn of ｕｮ､･ｲｳｴ｡ｩｾ＠
concerning cooperation in the agricultural sector;
Whereas, the two Governments have, on May 19, 1981, signed a Merrorandtnn
of Understanding concerning forestry hand-tools development and
establishment of mechanised nursery pilot project;
Whereas, the two Governments have mutually decided to continue their
co-operation in this field;
NCM therefore, the Government of Indonesia and the Government of Finland
have concluded the follCMs :

ARTICLE I
THE PIDJECI'

'Ihe Mech..anized Nursery and Plantation Project hereinafter referred to
as "'Ihe Project" shall be implemented in accordance with the project
description attached hereto (Annex I).

ARTICLE II
ｃＧｘｊＮＱｐｅｔｴ

Ｇ ｾ＠

AL l'HORITIES

'Ihe Ministry for Foreign Affairs of Finland, represented in Indonesia
by the Embassy of Finland, and the Department of Forestry of the Republic
of Indonesia shall be the competent authorities of the two Governments
for the implementation of this .Merrorandtnn of Understanding.

ARI'ICLE III
CONTRIBUTION OF THE CDVERNMENT OF FINLAND

'Ihe Government of Finland shall contribute funds tCMards the costs of
the Project on a grant basis up to a maximum of four million seven
hundred thousand (4. 700.000) Finnish Marks in 1983 and subject to
Parliamentary approval, three million two hundred and thirty-five
thousand (3.235.000) and one million fifty-eight thousand (1.058.000)
Finnish Marks in 1984 and 1985, respectively, as specified in the
cost estimate attached hereto (Annex II) •

ARI'ICLE IV
CONTRIBUTION OF THE GOVERNMENT OF INDONESIA

1. As specified rrore in detail in the Project description, the
Government of Indonesia shall ;
1.1. provide the following equipment and facilities for the need
of the Project
- main pipe line to the nursery and equipment for watercleaning
- electrical network for machinery and buildings

- the necessary construction and buildings, including nursery
1. 2. provide and bear the costs of ;
- office for the Project activities in Boger/Jakarta
- telephone communications within Indonesia for official
duties in Boger/Jakarta
- drivers, servicing and repair as well as fuel of project
vehicles
1.3. take care of
- the necessary soil tests
- the seedling production and reforestation operations under
the supervision of the Finnish party
1. 4. bear and directly cover the costs of necessary Indonesian
counterpart personnel in the central and provincial administration
1. 5. provide all relevant data, information and maps available and
necessary for the execution of the project
1. 6. render such assistant and take such action as may from time
to time be required for the srrooth and expeditious execution
of the Project.

2. All financial and any other obligations arising frc:rn the

inplementation of the Project over and above the Finnish
contribution referred to in article III above shall be undertaken by the Government of Indonesia.

ARI'ICLE V
RIGHTS AND OBLIGATIONS OF THE EXPATRIATE PERSONNEL

1. The Government of Indonesia in accordance with the prevailing
laws and regulations shall exempt :
l.l. the Expatriate Project personnel frc:rn inccme tax or any
other direct tax in respect of any errolument paid to
them for their services associate with the project

1.2. all materials and equipment inported into Indonesia for
the project under this Merrorandum of Understanding as
well as personal effects of the Expatriate personnel
frc:rn all customs duties 1 taxes and other charges on
inport 1 provided that they beccme and remain the property
of the Government of Indonesia or are re-exported frc:rn
the country on the ccmpletion of the project.
2. In respect of the Finnish personnel working in Indonesia under

this Merrorandum of Understanding the Government of Indonesia
shall :
2 .1. in case of damage to the third party caused by the Finnish
personnel in the course of their official duties in
Indonesia under this Memorandum of Understanding be l iable
in their place 1 and any claim against the Finnish personnel
shall to that extent be excluded unless such damage has
arisen frc:rn the gross negligenceor wilful or criminal
conduct of the Finnish personnel
2. 2. in the event of an International crises affecting the safety
of foreign nationals in Indonesia accord the same
repatriation facilities to Finnish personnel as to diplanatic
personnel according to the prevailing regulations.
ARI'ICLE VI
GENERAL PROVISIONS

1. The Corrpetent Authorities shall ensure that the resources made
available for the Project are exclusively utilized

for the needs of the Project in a rranner enabling the

implementation of the Project in the rrost effective way.
2. All inforrration and data received by a party from the
other party for the implementation of the Project can
only be used by the approval of the authorities concerned.
3. Any dispute arising out of the interpretation or application of this Merrorandtnn of Understanding shall be
settled amicably through consultation or negotiation
between the two Governments.
4 • This Merrorandtnn of Understanding may be amended or nodified by rrn.1tual negotiations between the two Governments; ,
such as amendment or rrodification shall be made in
writing in accordance with their respective procedural
requirements.
ARI'ICLE VII
ENTRY INIO FORCE; VALIDITY AND TERMINATION

This Merrorandtnn of Understanding may be terminated by written
notification by either party to the other and such termination
shall have effect at the expiration of three rronths from the
date of such notification.
OONE in Jakarta on this
14th

day of September 1983 :m
duplicate in English Language, l::oth texts being equally
authentic.

FOR THE GOVE:RN-1ENI' OF
REPUBLIC OF INIX)NESIA

FOR THE GOVERNMENT OF

Signed

Signed

REPUBLIC OF FINLAND

SUDJONO SURYO

PERrri A. 0. KARKKAINEN

·Secretary General,

Department of Forestry

Ambassador

ANNEX I

PROJECT DESCRIPTION
MECHANIZED NURSERY AND PLA NTATION
PROJECT IN SOU TH KALIMANTAN IN 1983-1985
1. BACKGROUND AND SUPPORTING INFORMATION
The I n donesian archipelago consists of 4.000 islands
with a total land area of 191,9 million hectares. The fo rested area decreased from 1950 to 1977 by 9,3 million
hectares or 5 % and is presently about 119,3 million hec tares. The main part of the forests is classified as mixed
natural forests .
Indonesia has a huge potential as a timber producer .
However, despite of increasing demand of timber for industrial raw material and domes tic use of the 140 million
population in households, the affores tat ion and reforestation programmes are very limited. As an example, the
raw material reserve for the pla nned South Kalimantan paper industry is estimated to be sufficient only for a period of 10 years . In 1977 the area of plantation forests
was only 1,72 mill. ha, including 940.000 ha of pine,
420.000 ha of teak, 100 . 000 ha of Agathis and 260 . 000 ha

of other species.
The reforestation and afforestation programmes of the
country should in the future be urgent ly expanded . Approx i mately 1 1/4 billion seedlings will be needed during Repelita III. This requirement pr esupposes improved technical
methods, equipment and machinery for the large scale pro duction of high - quality seedlings and for the establishment and management of industrial plantations.
In May 1981 the Government of Finland and the Government of Indonesia signed an agreement regarding implementation of a Forestry Programme which included a Mechanized
Nursery Pilot Project (ATA-267). The Project was carried
out in cooperation by a Finnish consultant and the Directorate General of Forestry of Indonesia in Subanjeriji,
South Sumatera, from November 1981 to December 1982 . At
the end of the proj ect the Finnish and Indonesian evaluat i on teams concluded that the following activities should
be further developed:
- The improvement of the skills of Indonesian personnel
in the field of nursery and plantation technology, among others through training of instructors with the
aim of facilitating a smooth transfer of technology
and improvement of expertise.
- Studies of the use of new and improved equipment
- Development of large-scale nurseries and plantations
For the reasons mentioned above the Government of
Finland and the Government of Indonesia have dec ided to
continue the cooperation with a new Mechanized Nursery and
Plantation Project to be carried out i n South Kalima n tan

from April 1 983 to April 1985 . The tentative plan of the
proposed project is outlined in the following.

2

2 . OBJECTIVES OF THE PROJECT
The programme is divided into three different subprojects with the following long-term and immediate objectives.
Sub - project I:

D
a

e v
n d

e 1 o p i n g n u r s e r y t e c h n o 1 o g y
t r a i n i n g o f n u r s e r y p e r s o n a 1

The long term objective of sub-project I is to develop economic nursery technology for large-scale production
of high - quality seedlings under Indonesian conditions. The

short-term objectives of the two project-years are consequently set as follows:
- To construct a new nursery in Landasan Uliin, Banjar
Baru, South Kalimantan capable of producing 1,5 - 2,0
million potted seedlings annually, and to slarl llle
initial seedling production during the first project
year on such a scale as required by the progress of
other sectors of the programme . The nursery is to
operate at full capacity during the second year in
order to produce the required 1,5 - 2,0 million seedl i ngs.
- To tra i n the staff and t h e workers of the nursery on
the job, in connection wit h the construction and prac tical operation of the nursery during the two project
years so that the local staff is able to manage and
run the nursery independently after the second year.
- To arrange in cooperation with the Finnish and Indonesian experts during the second year two training
courses for nursery supervisors and managers from
different parts of Indonesia, after the nursery has
achieved the full level of operation.
- In connection with t h e practical nursery operations
to carry out testing of alternative work mehtods paying special attention onto the development of balanced
and vigorous root system of seedlings. This test i ng is
of practical rather than of scientific nature.
Sub-project II:

M o difying
0

f

p o

t

t

e d

r e f o r e s t a
s e e d 1 i n g s

t i o n

m e t h o d s

The long-term objective of sub - project II is the establishment of a large-scale forest tree plantation in
South Kalimantan. The plantation would be using seddlings
produced by the new nuroery no well ns efficient equipment
introduced in the project and applying effective methods
for: seedling t ransportation, site preparation, planting,
and management. The short-term objectives during the two
project years are consequently as follows:
·
- Planning and managing the establishment of the plantation of 1,5 - 2,0 million seedlings during the se cond project year so that the local staff can take
over the total responsibility of the operation at
the end of the second project year.

3

- To test and modify farm tractor based mechanized
reforestation methods and equipme11L for loca l conditions of Sout h Kalimantan . The work is to be started
as soon as the conditions allow it in order to be
able to apply the introduced methods on practical
scale before the end of the second year.
- To train the local staf f and workers to apply modi fied man ual and mechanized reforestation technology
based on the use of potted seedlings . Training is to
be given the who l e number of staff and workers required for p l ant in g 1,5 - 2,0 million seedlings an nually.
- To carry out field tests in order to find out the
effect of soil preparation, weeding and fertilization
on the growth of young seedlings .
Sub -pr ujecl III :

Ma n a
i

g e m e n t
n d u s t r i a 1

p 1 a n n i n g
o f
p 1 a n t a t i o n s

The l ong -t erm objective of sub - project II I is to im prove the management planning of industrial tree plantations in order to secure the uninterrupted availability
and flow of wood raw ma t erial in the future for the Indonesian forest industry units, with par t icular emphasis on
pulp ind u stry. The short term objective is as follows:
- Traini n g managerial skill of industrial plantation
development for Indonesia personnel
To work out a management plan for a pulp wood plantation manage ment area the size of which would cor respond with the raw materia l requireme nt of a presently planned pulp mill in the area.
3 . PLAN OF OPERATION
Sub-pro j ect I :

D e v e 1 o
a n d

t

p i

r a i

n g n u r s e r y t e c h n o 1 0 g y
n i n g o f
n u r s e r y p e r s o n a 1

The constr u ction of the nursery wil l start in April
1983. The Finnish party wi l l be responsible for the planning and supervision of the construction work . The Indonesian partly will carry out the actual construction work .
The equipment and mach in ery for the nursery is as follows :
To be provided by the Finnish party :
- Pump equipment and irrigation system, exluding the
required building for a pump station
- Shading system
- Filling line for pot-tra ys , including a peat screen
- Hand-tools for seedling production , fertilizing and
plant protect i on
- Pot-trays, peat fertilizers and other chemicals for
production of 2,0 million seedlings
- Containers for transferring seedlings inside t he nur sery ar ea

4
- Farm tractor (80 hp)
To be provided by the Indonesian party:
- Main pipe line to nursery and equipment for water
cleaning
- Electrical network for machinery and buildings
- Necessary constructionsand buildings, including
accommodation for Finnish experts for prolonged stays
at the project sites.
The Finnish party will supervise the seedling production and train the local nursery staff and workers. The
Indonesian party will take care of the nursery operations
and the maintenance of the equipment and machinery under
the supervision of the Finnish consultant during the two
project years.
The Finnish party in cooperation with the Indonesian
nursery experts will arrange two training courses f or the
Indonesian nursery supervisors and managers from different
parts of the country during the second year of the project .
The Indonesian party will be responsible for the travelling
and accommodation expenses of the Indonesian participants .
Sub -proj ect I I :

Mo d i
o

f

f

p o t

y i n g
r e f o r
e d
s e e d 1 i

t

e s t a t
n g s

i

o n

m e t h o d s

The modifying and testing of improved manual and me chanized reforestation technology will be started as soon
as the availability of seedlings and other reforestation
material or weather conditions allow it . Modified hand tools and light farm tractor-based machinery for planting,
site preparation and weeding will be introduced . The following tools and machines are included :
To be provided by the Finnish party :
- Handtools for planting up to 2,0 million seedlings
per an num
- Farm tractor-mounted grass copper
- Farm tractor-mounted rotavator
- Farm tractor-mounted rotary tiller
Farm tractor - mounted ripper
- Farm tractor.mounted planting machine
- Containers for road transportation of up to 2,0 million potted seedlings per annum
Th e seedlings produced by the nursery will be planted
under the supervision of the Finnish party, when feasible
using the modified methods . The Finnish party will be res ponsible for the training of the staff and the workers
needed for the reforestation job. The Indonesian party will
take care of the practical field operations, provide the
labor for the work and finance the expenses of the reforestation .
Studies on the effect of alternative soil preparation
and weeding methods will be carried out in cooperation with
the Directorate General of Reforestation and Land Rehabilitation . The final biological results of these studies will
still not become available during the project period,

5
but the Indonesian party will complete the studies independently and inform the Finnish party of the results .
Sub-project III:

Ma n a g e m e n t
i n d u s t r i a 1

p 1 a n n i n g
p 1 a n t

a t

i

o f
o n

s

The Finnish party will make a general management plan
for an industrial plantation of a size corresponding to the
raw material need and species composition of a pulp mill
under planning in South Kalimantan . The Indonesian party
will furnish all maps and other available information needed
for the planning . The general management plan will include
work plans, work schedules and labour and cost calculations
for the following operations:
-

Seedling production
Reforestation operations, including weeding
Protection against fire, insects and pests
Road net work
Plantation maintenance
Harvesting of wood
Transport of wood to the mill
4 . ORGANIZATION AND STAFFING

The structure of the project organization wil l be
based on the existing Indonesian organization system through
the Department of Forestry . The Government of Finland will
give technical assistance in supervision and guiding as well
as provide necessary equipment to the project through a Fi n nish consultant. At the end of the second project y ear the
Indonesian party will take over the complete responsibility
for the nursery and reforestation operations.
4.1 Donor input
Contribution of the Government of Finland is expected
to be as follows:
1. To provide:
One expert specialist in reforestation to ac t as the
Finnish Team Leader who shall be responsible to the
Finnish Executive Authority for the implementation of
the project .
The Finnish Team Leader shall act in close consultation with the appointed Indonesian project manager
and shall respect the instruction given by the Indonesian Executive Authority and the project manager
to the Indonesian personnel and for the operations
of the project .
Qualifications : The Project Manager should be
thoroughly familiar with the technical details of the
range of alternative reforestation and nurser y technologies under tropical conditions . Additionally he
should be able to communicate his ideas effectively.
Duration: 24 months.
One expert specialized in seedling production as nur-

6

sery supervisor who will be responsible for the im plementa tion of all nursery related activities and
will report to the Project Manager .
Qualifications : The Nursery Supervisor should be
well versed in the choice of tools and methods associated with the various technological alternatives
in tropical nursery practices. Duration: 24 months .
- One expert specialized in reforestation as reforestation supervisor who will be responsible for th e implementation of all the reforestation activities and
will report to the Project Manager.
Qualifications: The Reforestation Supervisor
should be well versed in the choice of tools, implements a nd methods for reforestation under tropical
conditions and should be able to communicate his
ideas and directives effectively. Additionally he
should have a grasp about the basics of time and production studies . Duration: 24 months .
- Other short term specialists will be brought to the
project site accordi ng to requirements. These will
include work instructors, mechanics and special research personnel . Total input 12 man mont h s.
2. All tools, equipment and machinery required are lis ted under the plan of operation .
3 . Trainin g material, as well as some test trials and
analysis will partly be produced and carried out in
Finland .
The financing of the required scientific research
to be carried ou t by the Indonesian Forest Research
institutions, should come from a special bud ge t allocation, under the Finnish program . This special allocation is necessary because no advance reservations
for allocation has been made to the Indonesian Research Budget.
4 . 2 Indonesian input
Contribution of the Dep artment of Forestry is expected to be as follows :

-

Shall appoint a project manager who shall be responsible for the day to day operations under this project
To provide day to day counterparts for all sub -pr ojects
To provide relevant data and maps already available in
Indonesia as well as the items mentioned in t he plan
of operation
To carry out necessary soil tests for the selection of
a proper nursery site as well as for proposed planting
sites
To construct the nursery, including necessary buildin gs
for accommodation, under the supervision of the Finnish
party
Under the supervision of the Finnish party to take care
of the see dling production and r eforestation operations

·7

5. PROJECT SCHEDULE
5 .1
General schedule

The project wil l start l July 1983 and
it will be f inished 30 J u ne 1985.

5. 2

Sc hedul e for see dl ing production and
plantin g ope r ations
Nursery co n str u ction
1.7 -- 31 . 8 .1 983

Leve ll ing th e nu rsery area
Construction of the bored well
Construction of the main pipe line and
equipment for water cleaning
Starting of construction work of Buildings
Repairing the side road leading to the
nursery
Trans po rti ng the nursery material from
Finland to the nursery site .

1.9 -- 31.12 . 1 983

Assembling the nursery equipment
Finish work of construction

l.l --3 1 . 5 .1 984

Continuation the assembling of the nur sery equipment
Training the nursery personnel

Seedling production
1.1 2 .19 83 -- 31. 3 . 1984
Trial production of 500,000 - 900,000
pieces of Eucalyptus seedlings
1.6.1984--31.3.1985
Production of 1,5--2,0 million seedlings
Coursed for Indonesian nursery supervisors and managers
Reforestation
l . 7 --3 0 . 9 . 1983

Transportation of reforestation equip ment to t h e project area

1 . 10 -- 28.2.1984

Testing of reforestation eq u ipment in
Indonesian conditions

8

Training of local staff and workers in
using modified manual and mechanized
reforestation technology
1.3--30 . 4 . 1984

Planting of 500,000--900,0 00 pieces o f
Eucalyptus seedlings
Soil cultivation, planting an d weeding
of the planting area

1.5--31.10 . 1984

Soil cultivation of new planting areas
and weeding the planting areas

1 . 11.1984--30.4.1985
Planting of 1.5--2.0 million seedli n gs
and weeding the planting areas
Management plan
1.1 -- 30.6 . 1984

Acquisition of the basic information
and maps

1.7--31 . 12.1984

Terrain works

1.1--30.6 . 1985

Drawing up the proper plan

2

FIM 1,000
4

General expenses in Indonesia
Salary with social costs, travelling
expenses
- proje ct manager
Residence in Jakarta
Residence of experts in Banjarbaru
Three project vehicles (one in Jakarta,
two in Kalimantan)
Other costs
Unexpected costs
Overheads
Total

865
310
192
149
100
167
107
1 '890

5

General expenses in Fi nl and
Salaries with social costs, travelling
expenses
- pr oject management, consultants
335
Secretarial and accounting services
97
Drawing up training material
41
Material acquisition and assembling
38
Packing material, packing and dispatching 63
Training of Indonesian personnel in
Fi nl and
50
Other costs
35
Unexpected costs
67
Overheads
79
Total

805

6

Combination of expenses
Developing nursery technology and
training of nursery personnel

4,319

Modifying reforestation methods of
potted seedlings

1,563

Management pl anning of industrial
p lanta tions
General expenses in Indonesia
General expenses in Finland
Altogether

416
1,890
805
FIM 8,993

2
FIM 1,000

4
General expenses in Indonesia
Salary with social costs, travelling
expenses
- project manager
Residence in Jakarta
Re sidence of experts in Banjarbaru
Th ree project vehic l es (one in Jakarta,
two in Kalimantan)
Other costs
Un expected costs
Overheads
Total

865
310
192
149
100
167
107
l,R90

5

General expenses in Finl and
Salaries with social costs , travelling
expenses
- project management, consultants
335
Secretarial and accounting services
97
Drawing up trai nin g material
41
Material acquisition and assembling
38
Packing material, packing and dispatching 63
Training of Indonesian personnel in
Finland
50
Other costs
35
Unexpected costs
67
Overheads
79
Tota l

805

6
Combination of expenses

Developing nursery techno l ogy and
training of nursery personnel

4,319

Mod i fy in g reforestation methods of
potted seedlings

1,563

Management planning of industrial
plantations
General expenses in Indonesia
General expenses in Finland
Altogether

416
1,890
805
FIM 8,993